MODULE 6 Decision Making - nptel - Indian Institute of Technology ...
MODULE 6 Decision Making - nptel - Indian Institute of Technology ...
MODULE 6 Decision Making - nptel - Indian Institute of Technology ...
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Management Science I Dr. T. J. Kamalanabhan<br />
<strong>Indian</strong> <strong>Institute</strong> <strong>of</strong> <strong>Technology</strong> Madras<br />
<strong>Decision</strong> <strong>Making</strong> Process<br />
<strong>Decision</strong> making process<br />
– Intelligence<br />
» Sensing, finding, identifying, and defining problem/opportunity<br />
– Design<br />
» Diagnosing the problem/opportunity<br />
» Generating alternatives<br />
– Choice<br />
» Choosing the best alternative<br />
<strong>Decision</strong> Support Systems<br />
An information system<br />
Purpose to provide information for making informed decisions<br />
Interactive (needed for experimenting and prospecting)<br />
Definitions <strong>of</strong> DSS<br />
Gorry and Scott-Morton (1971): Management <strong>Decision</strong> Systems --<br />
Interactive computer-based systems, which help decision makers utilize<br />
data and models to solve unstructured problems.<br />
Keen and Scott-Morton (1978): <strong>Decision</strong> support systems couple the<br />
intellectual resources <strong>of</strong> individuals with the capabilities <strong>of</strong> the computer to<br />
improve the quality <strong>of</strong> decisions. It is a computer-based support system for<br />
management decision makers who deal with semi-structured problems.<br />
Basic themes <strong>of</strong> DSS<br />
Information systems.<br />
Used by managers.<br />
Used in making decisions.<br />
Used to support, not to replace people.<br />
Used when the decision is "semistructured" or "unstructured."<br />
Incorporate a database <strong>of</strong> some sort.<br />
Incorporate models.
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